halfords london road

SOUTHEND-ON-SEA SS0 9HS
HALFORDS LONDON ROAD
WELL SECURED, SOUTH EAST
OPEN A1 RETAIL WAREHOUSE INVESTMENT
2 HALFORDS, LONDON ROAD, SOUTHEND-ON-SEA, SS0 9HS
INVESTMENT SUMMARY
� Southend-on-Sea
is a major commercial town in the south east
with an extensive and affluent primary catchment population of
333,000 (Promis).
� Prominent
retail warehouse unit situated on the busy London
Road (A13) approximately 1 mile west of the town centre.
� The
property totals 7,665 sq ft with 30 car spaces providing a
ratio of 1:255 sq ft.
� The
property benefits from an open A1 part food/convenience
goods planning consent.
� Let
to the 5A1 covenant of Halfords Limited with approximately
10.5 years unexpired.
� Passing rent of £122,688 per annum, equating to £16.00 per sq ft.
� Strong
trading profile with the tenant having recently extended
their lease.
Our client is seeking offers in excess of
£1,600,000 (One Million, Six Hundred
Thousand Pounds) subject to contract and
exclusive of VAT. A purchase at this level reflects
a Net Initial Yield of 7.25%, allowing for usual
purchasers costs of 5.8%.
Rochford
3 HALFORDS, LONDON ROAD, SOUTHEND-ON-SEA, SS0 9HS
B1013
LONDON
SOUTHEND
AIRPORT
LOCATION
A6
A6
M1
ble
Royston
Eastwood
Southend Victoria and Southend
Central Railway Stations are
situated approximately 1 mile
away from the subject property,
providing direct connection to
London Liverpool Street Station
and London Fenchurch Street
Sudburya fastest journey time
Station with
A12
of 58 minutes.
Saffron
Walden
The A127
also
A10 provides
A505
Letchworth
convenient
links
to
Chelmsford
Garden City
to the north and Thurrock to the
Hitchin
A1(M)
south west, via the A130 and
A13, respectively. A120
A5
A602
Welwyn
Garden
City
Hemel
Hempstead
Bishop's Stortford
Ware
M11
A414
A414
A131
Hatfield
A414
d
Chelmsford
A10
A12
M25
A1
Enfield
M11
A406
M25
A12
A10
LONDON
A30
A102
A205
A3
A24
Epsom
Leatherhead
ord
Woolwich
Dartford
A2
Grays
A24
BIGGIN HILL
A23
Reigate
A22
Redhill
A22
Minster
A249
Oxted
A28
A2
A26
M20
A21
A26
Ashford
A229
A264
Crawley
Horsham
A2070
A229
A22
Hythe
A259
Crowborough
A26
A259
A21
A272
A272
A272
A23
A26
A283
Uckfield
A22
LONDON/ASHFORD
A259
A299
KENT
INTERNATIONAL
Southend-on-Sea has an affluent catchment
with 55.7% classified within the most affluent
ABC social groups (GB average: 51.1%)
(Focus). Car ownership is also above the
national average, whilst home ownership is
significantly above the Promis average.
Ramsgate
SITUATION
Deal
The subject property occupies a prominent
and accessible position fronting onto
A20 London Road (A13) approximately 1 mile
west of the town centre in an area known
as Westcliff-on-Sea.
A256
Tonbridge
GATWICK
B1016
A256
M2
A25
Sevenoaks
A299
A28
A299
A249
A28
Whitstable
Sittingbourne
Faversham
M26
M25
Southend-on-Sea has a resident urban
population of 160,257 (Focus) with a primary
catchment population of 333,000 (Promis)
and a total shopping population of 182,000.
Sheerness
A229
SOUTHEND
CENTRAL
STATION
CATCHMENT & DEMOGRAPHICS
Southend-on-Sea
Tilbury
M20
M25
M23
A264
A133
SOUTHEND
A228
A21
A217
A127
A2
Swanley
A13
THE RANGE
Leigh Sand
Canvey
Island
A13
A232
Sutton
M25
A13
A20
Kingston
upon Thames
Croydon
South
Benfleet
GREYHOUND
RETAIL PARK
Southchurch
WESTCLIFF
STATION
A130
A127
SOUTHEND
VICTORIA
STATION
LONDON ROAD
RETAIL PARK
A13
Felixstowe
Maldon
CITY
Richmond
A4
A316
A406
Leigh-on-Sea
A14
Rayleigh
A12
Uxbridge
A14
Leigh Sand
A12
Chigwell
B
A127
A10
Barnet
A41
A12
Little
Wakering
FOSSETTS
RETAIL PARK
Witham
A414
Cheshunt
HEATHROW
A120
Stonebridge
A1159
A158
A120
A120
Southend-on
-Sea
A127
Harwich
A12
Braintree
B1013
A127
A131
STANSTED
LONDON
LUTON
AIRPORT
RETAIL PARK
A1015
Southend-on-Sea is a major
commercial town located in the
South East approximately 43 miles
east of London with the A127
providing direct access to the
M25, approximately 18 miles to
the west.
A505 M11
Haverhill
Biggleswade
SOUTHEND
AIRPORT
STATION
The immediately surrounding area of London
Road is a combination of retail shops and
residential housing. Immediately to the west is
a site where a new Sainsbury’s convenience
store together with residential apartments
is proposed. Immediately to the east is a
Jewson builders merchant.
4 HALFORDS, LONDON ROAD, SOUTHEND-ON-SEA, SS0 9HS
DESCRIPTION &
ACCOMMODATION
The subject property comprises a detached retail
warehouse unit extending to a Gross Internal Area of
approximately 7,665 sq ft.
The tenant has installed a trading mezzanine of
approximately 65% cover.
Car parking is laid out to the front and side of the property
with 30 spaces in total providing a car parking ratio of
1:255 sq ft. Servicing is to the rear of the property and is
accessed through the customer car park.
The total site area is 0.21 hectares (0.52 acres).
PLANNING
CONSENT
Planning consent was granted on 30th March 1994 to
“construct class A1 retail unit and lay out parking area at
front and side”. The conditions of the consent state the
property is not to be used primarily for the sale of food,
drink, tobacco, soap or household cleaning products.
We therefore consider that the property has a largely
open A1 consent with provision for part of the unit to be
used for the sale of food and convenience goods.
Planning documents are available on request.
5 HALFORDS, LONDON ROAD, SOUTHEND-ON-SEA, SS0 9HS
TENURE
The property is held freehold. Title information
is available on request.
TENANCY
The property was originally let to Halfords Limited
for 25 years from 25th December 1994. The
lease is drafted on an institutional full repairing
and insuring basis with 5 yearly upwards only
reviews to open market value.
The current passing rent is £122,688 pa,
reflecting £16.00 psf and the December 2014
review is not subject to any rental cap.
In June 2014 a reversionary lease was entered
into commencing 25th December 2019 for a term
of 5 years expiring on 24th December 2024.
The reversionary lease is subject to an
upwards only second day rent review on
26th December 2019 subject to a cap of
3.5% per annum compounded.
Proposed
residential
apartment
scheme
The property therefore provides in excess
of 10 years unexpired.
To be
Halfords received 12 months rent free as part of
the reversionary lease, which our client will top
up. There is also a side letter permitting monthly
rent payments.
Lond
on R
oad
(A13
)
TENANT’S COVENANT
Halfords Limited is the leading retailer of car
parts, car enhancement, camping, touring,
mobility and bicycles operating in the United
Kingdom and Ireland. The Group is also the
leading MOT, service and repairs provider
through Halfords Autocentre.
Halfords Limited
Sales Turnover
Profit/ (Loss) Before Taxes
Tangible Net Worth
They currently trade from more than
460 outlets and in the past 3 years have
reported the following figures in their
annual accounts:
29 Mar 2013
30 Mar 2012
1 Apr 2011
£745,500,000
£752,300,000
£771,400,000
£75,500,000
£101,300,000
£122,000,000
£481,400,000
£425,800,000
£350,900,000
The company has a Dun and Bradstreet
rating of 5A1 reflecting minimal risk of
business failure.
ENVIRONMENTAL
AND EPC
A copy of an environmental report is available upon request.
The EPC rating is D-97.
VAT
The property is elected for VAT.
FURTHER
INFORMATION
NICK RICHARDSON
T: 020 7312 7420
E: nick.richardson@montagu-evans.co.uk
EDWARD GEORGE
T: 020 7312 7489
E: edward.george@montagu-evans.co.uk
ANGUS MARLOW-THOMAS
T: 020 7866 8612
E: angus.marlow-thomas@montagu-evans.co.uk
Subject to contract
PROPOSAL
Misrepresentation Act 1967
Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that:
1 The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract. 2. All descriptions, dimensions,
references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever and any intending purchasers or tenants should not
rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. Montagu Evans LLP nor their employees has any authority
to make or give any representation or warranties whatsoever in relation to the property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must
satisfy themselves independently as to the applicable VAT position. 5. All the plans and maps provided within the particulars are for identification purposes only.
Designed and produced by THE
GROUP
www.completelygroup.com
Our client is seeking offers
in excess of £1,600,000
(One Million, Six Hundred
Thousand Pounds) subject to
contract and exclusive of VAT.
A purchase at this level reflects
a net initial yield of 7.25%,
allowing for usual purchasers
costs of 5.8%.
11219.001 Southend-on-Sea Halfords, London Road | July 2014